Profit with Risk of Loss

‘Amr b. Shu‘aib reported on the authority of his father, who narrated on the authority of his father: The Messenger of Allah (Sall Allah-o-alaihe wa sallam) said: “The sale transaction of something which is not in your possession is not lawful, nor is the profit arising from something which does not involve liability.”


Source: Economic Teachings of Prophet Muhammad (peace be upon him): A Select Anthology of Hadith Literature on Economics, Muhammad Akram Khan. Republished with permission.
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